MUMBAI, April 1 The Indian central bank should not be in the business of bailing out banks by infusing cash to make up for year-end distortions and the current policy rate has been appropriately set, the central bank chief said post the policy review on Tuesday.
"If we actually had second thoughts about the rate, we would have moved the rate. We believe the rate is appropriately set right now given our anticipation of events for the next few months," Raghuram Rajan told reporters at the post policy press briefing.
The central bank left its policy interest rate unchanged, as expected, and said it does not expect further near-term policy tightening if headline inflation continues to ease towards the bank's targeted level. (Reporting by Suvashree Dey Choudhury; Writing by Swati Bhat; Editing by Anand Basu)